SCG enhances production and distribution in Vietnam

SCG enhances production and distribution in Vietnam

Amid increasing competition in Vietnam's chemicals and construction materials sector, Thailand's Siam Cement Group, investor and developer of the $5 billion Long Son Petrochemicals Complex, has been optimising production, distribution, and market access.

SCG is primarily focusing on the innovation of products which enhance the development of high value-added products such as low carbon cement, recycled resins, green carton, and UV-resistant Polypropylene Random Copolymer plastic pipes.

“We are investing in innovation, continuing digitising operational processes and applying AI/Robots to production, such as with the Intelligent Centre at Long Son Petrochemicals Complex, robots for production and product packaging, camera-based product testing machines,” said Kulachet Dharachandra, country director, SCG (Vietnam) at a meeting with media in Ho Chi Minh City on February 3.

Long Son Petrochemicals is the largest petrochemical complex in Vietnam

Green transition is another top priority. SCG’s net-zero roadmap is aligning with the Vietnamese’s government’s green commitments by applying alternative fuel such as biomass, biogas, and solar roofing.

Vietnam is a strategic country and the second home for SCG. SCG is Vietnam’s trusted partner in co-creating growth, delivering high-quality innovation, nurturing human potential, and empowering communities.

“Over the past several years, SCG has invested more than $100 million in energy-efficiency and renewable-energy projects. The company also prioritises the development of environmentally friendly products and services across all business units,” said Dharachandra.

The company has invested over $7 billion, accounting for 28 per cent of SCG’s total assets with 28 subsidiaries, 50 factories and over 15,000 employees, laying a strong foundation in various industries in Vietnam, he said.

Among those, Long Son Petrochemicals (LSP) is the largest petrochemical complex in Vietnam, playing a significant role in the country’s industrial development.

Other units include Binh Minh Plastics, SCG and Song Gianh focusing on low carbon cement, Prime Group producing ceramics, Duy Tan Plastics producing packaging supporting the circular economy, and Vina Kraft Paper producing paper and packaging.

2025 saw domestic sales revenue of $1.7 billion (up from $1.55 billion in 2024), contributing 11 per cent to the group’s total revenue.

After some time closed for an upgrade, LSP resumed in August 2025 with a new investment of $500 million to enhance its ethane feedstock operations.

This strategic move is expected to reduce feedstock costs, increase flexibility in sourcing and utilisation, and lower GHG emissions, in line with environmentally friendly practices. The project is scheduled for completion by the end of 2027, coinciding with a projected recovery of the regional petrochemical industry following a period of challenges driven by global geopolitical volatility.

The year also witnessed the launch of SCG low carbon cement with 15 per cent lower carbon emissions, innovation in operation's, ASEAN’s first pilot biomass gasifier in ceramic production, and the first management enhancement development by Duke Corporate Education for 40 Vietnamese leaders.

Other measures to strengthen competitiveness include smart manufacturing, green manufacturing, and green innovation.

LSP operates the plant fully through computer-based systems, applies digital predictive maintenance solutions, has deployed more than 80 IT and digitalisation applications, and is implementing over 150 AI projects.

The company has also remained fully compliant with environmental regulations, reduced CO₂ emissions by 20,000 tonnes, equivalent to the annual carbon absorption capacity of 323 hectares of mangrove forest, used 18,000 cubic metres of low-carbon concrete in the construction of ethane storage tanks, and conserved 24 ha of mangrove forest.

LSP is also collaborating with other partners to develop high-durability recycled plastic pellets using LSP’s specialised Polypropylene copolymer, helping to improve the quality of recycled materials.

The company also produces key olefin products, including ethylene and propylene, with a combined capacity of around 1.35 million tonnes per year, alongside polyolefin products with a total capacity of 1.4 million tonnes per year.

With total investment exceeding $5 billion, LSP is located on a site spanning more than 460 hectares in Long Son commune, Ho Chi Minh City. At full capacity, the complex is expected to generate annual revenues of around $1.5 billion.

VIR